Gen Z Voices explores the Gen Z perspective on marketing, technology, social media and the future of the ad industry. Submit your essays here.

Last week I tried Coca-Cola’s newest drink: Coca-Cola Y3000—which was developed by combining global consumer insights and AI. In the past year Coke has doubled down on AI-driven marketing efforts. Why? To target Gen Z consumers.

As a Gen Z customer, I was drawn to this launch because I rely on AI in most aspects of my life, including daily Siri reminders and finding #styleinspo on TikTok. Sipping the cotton candy-infused soda, I couldn't help but wonder: Is AI just a marketing hype or will it play a key role in shaping future products and experiences? 

The marketing industry loves the latest buzzwords. Last year, it was NFTs and the metaverse. Now, it's AI. But beyond the hype, OpenAI’s ChatGPT has democratized advanced AI, offering brands an opportunity to meet the nuanced needs of Gen Z while realizing many business benefits. 

Retail is undergoing rapid transformation as it adapts to Gen Z, a demographic with $360 billion in global spending power. From how they socialize to how they shop and work, Gen Zers are distinct from previous generations. Here is how AI-driven marketing efforts help brands establish enduring cultural relevance and loyalty, particularly in challenging economic times:

Personalize customer interactions at scale

Gen Zers value personalized brand experiences, but in a cookie-less digital landscape with soaring ad spend, personalization has become more challenging. Brands can use AI chatbots to personalize customer interactions at scale.

As the first digitally native generation, Gen Z has high expectations for digital brand experiences. While they’re open to sharing data, they expect brands to make them feel seen through individualized and anticipatory experiences across the customer journey. Brands can use generative-AI chatbots to deliver on Gen Z’s growing expectation for ease and immediacy. 

Kering, the luxury group that owns Gucci, launched a ChatGPT-powered personal shopper to assist customers with managing their wardrobes and providing tailored product recommendations. The power of these chatbots is in their ability to mimic human-like qualities, such as empathy and humor, to build rapport with customers.

When using chatbots, marketers should avoid oversimplifying Gen Z into a single persona. Instead, marketers should segment them based on shared values and character traits, using AI to personalize communications based on subsegments. As AI systems learn more about a company’s products and customers, they’ll eventually be able to predict behaviors, reach out in anticipation of customer needs and tailor ads to each individual.

Deliver engaging customer experiences

Gen Z crave authentic, tech-driven and immersive brands. However, 71 percent of CMOs believe they lack sufficient budget in 2023 to fully execute their marketing strategies. Brands can use AI to streamline creative workflows and deliver engaging customer experiences.  

Gen Z aren’t looking for the picture-perfect brand; they want experiences they can participate in and see themselves as co-creators of new trends. In the TikTok era, brands are lucky to capture six seconds of customer attention. Participatory experiences, by contrast, can reinforce Gen Z’s expectation to be entertained in new ways.

Brands can use AI to invite customer participation in product innovation and content creation. For example, Coca-Cola’s “Create Real Magic” contest allowed customers to create digital art using the brand’s AI platform and submit their work to be featured in future campaigns. Customers could even share their work with the community on Instagram.

Due to its accessibility, generative AI is revolutionizing marketing, from ideation to advertising and community engagement. 

Offer more inclusive representation

Gen Z is the most diverse generation yet. Brands can use AI to offer more inclusive representation in product advertising and brand storytelling. 

Gen Z is also the most gender-liberated generation—with 25 percent anticipating changing their gender identity at least once during their lifetime. These consumers value diversity and want to be represented in the brands they use. 

Forty-two percent of online shoppers don't feel represented by models online. Here’s where AI can help brands cost-effectively embrace more inclusive representation in how they advertise products and tell brand stories. 

Levi’s is testing AI-generated clothing models to diversify the online shopping experience and reduce operating costs. Customers can view clothing on a multitude of models spanning body types, ages and skin tones. 

As brands train their generative AI systems, they can collaborate with experts from diverse fields and seek user feedback to overcome systemic biases in AI. 

Here are some tips for brands to get started:  

Identify goals: Leveraging AI isn’t about starting from scratch but using new tools to amplify a brand's unique voice. Consider your audience and how AI can add value to the overall marketing approach.

Establish governance: Outline processes to address the emerging AI risks, including misinformation, inherent biases, IP challenges and data privacy concerns. 

Focus on feedback and upskilling: Experiment and define clear metrics and channels for customer feedback. CMOs will also need to cultivate new skill sets (i.e., AI prompting), as AI-powered marketing becomes a competitive business advantage.  

AI is developing at an exponential pace, enabling brands to optimize the entire marketing journey. By leveraging AI to forge meaningful connections with Gen Z, brands can boost sales and foster loyalty.